MAT540 Quantitative Methods Midterm 100 Solution 40 Questions

Question: #929

QUESTION 1
1. At a rate of 15%, what is the future value of the following cash flow stream?
Years:     0                    1                  2                   3                   4

                                 |__________|__________|__________|__________|
                 CFs       $0                 $75              $225               $0               $300
0

    $773.37

    $711.63

    $406.88

    $467.90

    $600.00
10 points
QUESTION 2
1.    Suppose you deposited $13,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days?

    13474.22

    13463.02

    13451.82

    13457.42

    13446.22
10 points
QUESTION 3
1.    Partners Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. An offer to lend you the $50,000 also comes from Community Bank, but it will charge 6.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?

    1.56%

    1.30%

    1.09%

    0.91%

    0.72%
10 points
QUESTION 4
1.    You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2?

    $1,994.49

    $2,099.46

    $2,209.96

    $2,326.27

    $2,442.59
10 points
QUESTION 5
1.    You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, 3 years from now?

    $11,973

    $12,603

    $13,267

    $13,930

    $14,626
10 points
QUESTION 6
1.    You decided to deposit your money in the bank at the beginning for the year instead of the end of the year, but now you are making payments of 2750 at an annual interest rate of 5%. How much money will you have available at the end of six year?

    19641

    14249

    15304

    16070

    14961

Solution: #935

MAT540 Midterm (100 Solution) 40 Questions

Question 1

1. Deterministic techniques assume that no uncertainty exists in model parameters.
Answer

True

False

Question 2

2. An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736.

Answer

True

False

Question 3

3. A continuous random variable may assume only integer values within a given interval.
Answer

True

False

Question 4

4. A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches.

Answer

True

false
5. Question 5

Excel can only be used to simulate systems that can be represented by continuous random variables.

Answer

True

False

Question 6

Starting conditions have no impact on the validity of a simulation model.

Answer

True

False

Question 7

Data cannot exhibit both trend and cyclical patterns.
Answer

True

false

Question 8

Qualitative methods are the least common type of forecasting method for the long-term strategic planning process.

Answer

True

false

Question 9

Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. What time is exceeded by approximately 75% of the college students when trying to find a parking spot in the main parking lot?

Answer

5.8 minutes

6.4 minutes

9.2 minutes

3.5 minutes

Question 10

__________ is a measure of dispersion of random variable values about the expected value.

Answer

Standard deviation

Range

The z-score (the standard score)

All of the above

Question 11

The __________ is the expected value of the regret for each decisi...